Magadh Sugar, Shree Renuka, EID Parry Share Price: Sugar Stocks Rally Up To 12 Per Cent - Know Why

Sugar stocks extended rally for the second consecutive day on May 13 as broader market indices logged gains, even as the headline indices closed lower. Shares Magadh Sugar and Energy rallied as much as 19 per cent to the day’s high at Rs 821 apiece on the NSE after the company announced its quarterly earnings today for the quarter ended March 31, 2025 (Q4 FY25). However, it settled with 12.1 per cent gains at Rs 773.1 per share.

Magadh Sugar reported 52.5 per cent year-on-year (YoY) growth in its net profit for the quarter, which came in at Rs 71.5 crore. Sequentially, its net profit grew 238 per cent. The sugar company’s management also declared a dividend of Rs 12.5 per share.

The Ugar Sugar Works shares closed higher by 5.24 per cent at Rs 45.30 apiece after the company reported a net profit of Rs 50.7 crore, up 208.3 per cent YoY and up 927 per cent quarter-on-quarter (QoQ).

Major sugar companies like EID Parry, Triveni Engineering & Industries, Shree Renuka Sugars, Dalmia Bharat Sugar and Industries, and Bajaj Hindusthan Sugar also ended the day in green, gaining between 1 per cent to 3 per cent. However, Balrampur Chini Mills ended the day in red, slipping 0.8 per cent.

Other sugar stocks such as Godavari Biorefineries, Dhampur Sugar Mills, Dwarikesh Sugar Mills, Rana Sugars, Vishawaraj Sugar Industries, and Rajshree Sugars and Chemicals also rallied in the range of 3 per cent to 5 per cent.

Rising Crude Oil Supporting Sugar Prices

Crude oil prices edged up today. As of 5:15 PM, Brent Crude futures surged 0.9 per cent to $65.55 per barrel. US West Texas Intermediate (WTI) Crude also climbed around 1 per cent to trade at $62.57 per barrel.

In the previous session, the two oil benchmarks rose by about 4 per cent after the US and China struck a trade deal to reduce the exorbitantly high tariffs the two countries impose on each other, for at least 90 days. However, the prices eased later, closing with around 1.5 per cent gains, on concerns about rising supplies. 

Over the last week, the two oil benchmarks have rallied around 12-13 per cent each.

Earlier this year, oil prices had corrected sharply as investors feared that the tariffs might trigger a global recession, resulting in weaker demand.

Typically, when oil prices rise, sugar prices also go up. That is because higher oil prices make ethanol, a biofuel derived from sugar, look more attractive as an alternative fuel. In this scenario, investors anticipate that sugar mills might divert sugar cane towards the production of ethanol instead of sugar. This drop in sugar production can lead to a shortage, thus pushing sugar prices higher.

With the increase in sugar prices, sugar companies are expected to see bigger profits.